2 nd Quarter & 1 st Half 2016 Financial Results Disclaimer The - PowerPoint PPT Presentation

2 nd Quarter & 1 st Half 2016 Financial Results

Disclaimer The presentation is prepared by Super Group Ltd (“Super” or “the Group”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Group in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and does not purport to be a complete description of the Group, its business, its current or historical operating results or its future business prospects. The statements are not and should not be construed as management’s representation on the future performance of Super. Our forward-looking statements involve risks and uncertainties, many of which are beyond our control, and important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, increased competition, pricing actions, continued volatility in commodity costs, increased costs of sales, risks from operating globally and tax law changes. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Group specifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation. 2

Content  Performance Summary for 2Q16  Segmental Review  Trends Analysis  Balance Sheet Highlights  Appendix  Profit & Loss Highlights 3

Performance Summary for 2Q16 Robust financial resources & initiatives to ride through challenges  Resilient Branded Consumer (“BC”) sales amidst challenging market conditions - BC sales reported 6% YoY decline from effects of weaker regional currencies - In constant currency terms, BC sales would have declined by 3% - Improved sales from certain key markets showcase BC sales resilience amidst challenging market conditions  Food Ingredients (“FI”) sales made inroad into new markets - Expanded footprint now includes markets such as Europe and the Middle East  Income generating capability remains intact - PATMI fell 7% to S$9.8m - However, PATMI margin stable at 8.5% (2Q15:8.4%) while EBITDA margin improved to 16.9% (2Q15:16.4%)  Strong financial position with cash generative business model - Net cash from operating activities increased to S$19.5m (16.9% of revenue ) - Net cash balance grew to S$116.5m (31/12/15: S$96.6m) - Gearing remains low; Debt-to-Equity ratio at 0.24 times  Declare interim dividend of 1.0SG cent per share - Consistently paying ≥ 50% of net profit as dividends since FY2010  Initiatives to improve long term performance - Consolidation of non-dairy creamer (“NDC”) facilities to improve production efficiency and reduce operating costs - Continue to push through Branding, Innovation & Diversification (“BID”) strategy 4

Performance Summary for 2Q16 Resilient income generating capability and operating cash flows 5

Segmental Review BC remains major revenue contributor Super’s integrated business model Downstream Upstream BC segment FI segment BC accounts for 65% of sales (2Q15: 64%) FI accounts for 35% of sales (2Q15: 36%) 6

Segmental Review – BC Sales Improved sales in key markets showcase BC sales resilience Revenue declined 6% YoY to S$75.0m  Declined 3% in constant currency terms; depreciation in regional currencies such as Thai Baht, Malaysian Ringgit and Chinese Renminbi against the Singapore Dollar adversely affected reported Group revenue Southeast Asia  Sales declined 6% YoY – Mainly due to lower sales in Myanmar from lower selling prices to distribution partner to mitigate weaker Kyat which affected reported Myanmar sales  Partially offset by – Stronger sales in Thailand, Singapore and the Philippines Thailand improved following the launch of ESSENSO TM – Microground Coffee in May 2016 despite continued competitive market conditions, weak consumer sentiments and local currency East Asia  Sales improved 15% YoY – Stronger sales driven by China Others  Sales dipped 25% YoY 7

Segmental Review – BC Sales Coffee remains as core sales driver  Coffee contributed 78% of BC revenue (2Q15: 79%)  Cereals contributed 7% (2Q15: 8%)  Product Innovation and Branding will remain the focus to drive longer term growth in other segments from 2H2016 onwards 8

Segmental Review – FI Sales Diversified and expanded footprint from new markets Revenue dipped 12% YoY to S$40.0m Southeast Asia  Sales declined 29% YoY – Decline led by Indonesia and the Philippines – Affected by forex and slower demand owing to competitive market conditions and weaker consumer sentiment East Asia  Sales improved 10% YoY – Increase in sales driven by China Others  Sales increased to S$2.9m (2Q15:S$0.2m) ‒ New markets such as Europe and the Middle East contributed to increased sales 9

Segmental Review – FI Sales Instant coffee & non-dairy creamer are major revenue contributors  Non-dairy creamer (“NDC”) accounted for 49% of FI revenue while soluble coffee powder (“SCP”) accounted for 46%  Premium products to drive sales  Maintain focus on value-adding to existing products and rolling-out more premium products 10

Trend analysis – Revenue ,PATMI Margin and EBITDA Margin Income generating capability remains intact S$m Revenue, PATMI Margin and EBITDA Margin % 160.0 30.0% 141.1 140.0 25.0% 121.7 125.5 121.0 119.4 115.0 120.0 20.1% 19.6% 20.0% 17.9% 100.0 16.9% 16.4% 80.0 15.0% 13.0% 11.1% 60.0 11.2% 9.7% 10.0% 8.4% 8.5% 40.0 6.1% 5.0% 20.0 0.0 0.0% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Revenue Net profit margin EBITDA margin PATMI margin  PATMI and EBITDA margins improved to 8.5% (2Q15: 8.4%) and 16.9% (2Q15: 16.4%) respectively, indicating resilient income generating capability 11

Trend analysis – Operating Cash Flows Cash generative business model intact Operating Cash Flows and Operating Cash Flows as a Percentage of Revenue S$m % 40.0 30.0% 35.0 25.0% 23.8% 30.0 21.3% 20.0% 25.0 33.6 16.9% 20.0 15.0% 15.1% 25.5 18.9 19.5 15.0 10.0% 9.5% 10.0 5.0% 4.6% 11.5 5.0 5.6 0.0 0.0% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Operating cash flow Operating cash flow as a % of revenue  Cash generative business model ‒ 2Q16 net cash from operating activities grew to S$19.5m (i.e. 16.9% of revenue) from S$18.9m (i.e. 15.1% of revenue) in 2Q15 12

Trend analysis – Net Asset Value and Net Cash Balance Strong Financial Position S$m S$m Net Asset Value* and Net Cash Balance 540.0 130.0 521.9 120.0 520.0 510.4 528.3 116.5 110.0 500.7 115.4 500.0 515.1 100.0 507.0 480.0 90.0 96.6 80.0 460.0 82.4 70.0 440.0 71.0 70.4 60.0 420.0 50.0 400.0 40.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Net asset value Net cash balance  Net cash balance increased to S$116.5m as of 30 June 2016  Financial resources to support growth strategies and ride through challenges *Net Asset Value = Equity attributable to the owners of the Company 13

Balance Sheet Highlights In S$’000 Jun 16 Dec 15 In S$’000 Jun 16 Dec 15 Non-Current Assets 271,253 287,965 Non-Current Liabilities 7,697 7,369 Property, plant and 257,387 273,698 Deferred tax liabilities 7,237 7,298 equipment Shareholders’ Equity 506,977 521,873 372,013 377,422 Current Assets 102,907 106,306 Inventories 120,005 140,759 Trade and other receivables Ratios 144,336 123,944 Cash and bank balances NAV per share (cents) 45.49 46.80 Debt-to-equity ratio (times)* 0.24 0.24 Current ratio (times) 3.20 3.15 Current Liabilities 116,139 119,639 Trade Receivables turnover (mths) 2.74 2.49 Trade and other payables 78,274 80,523 Inventory turnover (mths) 4.34 4.14 Bank loans 27,885 27,354 Trade Payables turnover (mths) 1.03 1.08 *: Computed based on Total Liabilities divided by Total Equity.   Property, plant and equipment decreased due to Cash and bank balances increased to S$144.3m depreciation charges and currency realignment  Trade and other payables decreased due to payment  Inventories decreased due to lower raw material of accrued expenses balances at period end  NAV per share stood at 45.49 SG cents  Collection of trade debts and compensation monies  D/E ratio of 0.24 times; low gearing received resulted in the decrease in trade and other receivables 14

Appendix 15